Thursday, August 7, 2025
23.6 C
Lagos

Stanbic Bank Report: Business Conditions Improving at Weaker Pace

 The Nigerian private sector remained in growth territory in September, although there were some signs of moderation as rates of expansion in output and new orders softened.

Companies continued to expand purchasing activity and employment in line with higher new orders. Suppliers’ delivery times improved further amid a lack of road congestion.

Meanwhile, increased workforce numbers and sufficient capacity to fulfil new orders led to a series- record decline in the level of incomplete work.

Looking forward, however, business sentiment was the weakest since the start of the survey in January 2014 as some firms reported difficulty planning for the year ahead.

On the price front, overall input price inflation was marked and was driven by increase in raw material costs and unfavourable exchange rates against the US dollar.

At 52.5 in September, the headline seasonally adjusted PMI signalled expansion and one which extended the current sequence of strengthening business conditions to three months. That said, down from 54.6 in August, the reading pointed to a more moderate improvement.

Output and new orders rose sharply during September.

In both cases, firms attributed growth to improvements in customer demand following the easing of restrictions related to the coronavirus disease 2019(COVID-19).

Higher workloads prompted firms to increase staffing levels which led to the fastest pace of job creation since February. The rise in workforce numbers paired with sufficient capacity led to series-record depletion in the amount of outstanding business.

Higher purchase costs were the main factor behind strong overall inflationary pressures. Purchase price inflation was substantial following reports of unfavourable exchange rate movements.

Firms responded to improving customer demand by raising purchasing activity at a sharp pace. Respondents also reported solid growth in stocks of purchases which was linked to planned increases in output levels. Prompt orders and quiet road conditions meant that input delivery times shortened to the greatest extent in almost two-and- a-half years.

Looking ahead, business confidence remained positive overall as firms continue to foresee a rise in output over the year ahead. That said, sentiment dropped to the lowest in the series so far amid reports that some firms were not planning to expand output at present.

spot_img
spot_img

Hot this week

Investor Confidence: Stanbic IBTC Holdings Surpasses ₦100 Stock Price Threshold

Stanbic IBTC Holdings Plc has achieved a remarkable milestone,...

Leadway Assurance Partners Ecobank to Expand Access to Tailored Insurance Solutions

Leadway Assurance, Nigeria's leading insurance provider, has formally entered...

ICAN Fidelity Bank Chapter Chair to Focus on Capacity Building, Professional Excellence

L-R: Chairman of the Occasion and Regional Bank Head...

Sterling HoldCo Delivers 157% Profit Growth in Half-Year 2025

Sterling Financial Holdings Company Plc has reported a 157%...

Topics

Red Star Express Commemorates 25th Anniversary

One of Nigeria’s leading logistics company Red Star Express...

Emirates Flies the World’s Tallest Height to put Dubai 2020 Expo on Top

Keeping with Dubai’s ‘nothing is impossible’ spirit, Emirates is soaring...

Africa’s Economy: International Confab Holds October 22 in USA

An International Conference with the theme, Africa's Economy: The...

‘Poor Education Funding Stalling Growth in Nigeria’-IntelServe CEO

Mr. Roman Oseghale, Head Consultant and CEO of IntelServe...

Sub-Saharan Africa Sees International Debt Stock Reach $402.8bn 2014

At the end of 2014, the international debt of...

Building a Legacy – A Lot on My Table

By Nonso Okpala “You have less than 100 years to...

NCC Warns Users against ‘Mobile Apps Group’ over Trojan, Malware Concerns

Following the constant introduction of malicious apps into Google...
spot_img

Related Articles

Popular Categories

spot_imgspot_img